New Crypto Warning Is Out: US Government Could Access Your Smartphone Crypto Wallet?

There are more and more crypto-related dangers ahead according to the latest reports.

Could the US government access your crypto?

Former Coinbase chief technology officer Balaji Srinivasan revealed a terrible warning. He thinks the US government could try to use tech giants like Apple and Google to steal crypto from citizens.

Srinivasan says that world governments could be bankrupt in a decade and desperate to seize Bitcoin (BTC) to fund their operations.

“He says the US government probably won’t have the capability to execute a 51% attack on Bitcoin. A 51% attack is when a miner or mining pool gains more than 50% of the network hash rate in order to rewrite the ledger and double-spend prior transactions,” the online publication the Daily Hodl notes.

Srinivasan says China might be able to pull off a 51% attack, but notes that most mining happens outside Chinese borders now, making that outcome less likely.

The former Coinbase CTO says the real “systemic risks” for crypto are Apple and Google.

“Instead, the federal government may try to compel Apple and Google (and other tech companies) to hunt for private keys on the servers, devices, and browsers they control. And to remit any stolen funds to a cash-hungry federal government.”

More crypto issues to watch out for these days

Ledger has released a firmware update for Nano X cold wallet, which offers a recovery service.

The crypto community is criticizing the service because it allows Ledger to store the seed phrases so that it can offer recovery. It’s been revealed that a lot of users are especially skeptical because Ledger has experienced data breaches in the past.

This update introduces a recovery feature that allows Ledger to back up seed phrases.

“Cold wallet manufacturer Ledger is under fire yet again, this time for releasing a firmware upgrade that includes a subscription-based feature called “Recover.” The feature is facing criticism for granting the company access to customers’ seed phrases, which undermines the purpose of a hardware wallet,” notes.

Ledger reveals updates about the issue

The Ledger CEO said:

Someone commented: “Ledger is now doing a podcast tour to tell the world they plan to hand over your private keys if a government asks them. I repeat, do not use Ledger. Migrate away now. They’re either idiots or feds, either scenario is wildly dangerous for their users.”

This update introduces a recovery feature that allows Ledger to back up seed phrases.

Stay tuned for more details about this.

You May Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *